Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0616*
HOUSE BILL 616
J3 EMERGENCY BILL 6lr2885
CF 6lr2697
By: Delegate Cullison
Introduced and read first time: January 30, 2026
Assigned to: Health
A BILL ENTITLED
AN ACT concerning 1
Health Services Cost Review Commission – Health Facilities – Jurisdiction and 2
Rate Setting 3
FOR the purpose of altering the jurisdiction of the Health Services Cost Review 4
Commission; requiring the Commission, in carrying out certain responsibilities 5
relating to evaluating facility resources to meet certain financial requirements and 6
reviewing costs and rates of hospital services, to take into account all costs incurred 7
or expenditures made by a health facility in connection w ith the operation of the 8
facility; and generally relating to health facility rate setting. 9
BY repealing and reenacting, with amendments, 10
Article – Health – General 11
Section 19–211(a), 19–212, and 19–219(b) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – Health – General 16
Section 19–219(a) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF M ARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Health – General 22
19–211. 23
2 HOUSE BILL 616
(a) (1) Except for a facility that is operated or is listed and certified by the First 1
Church of Christ Scientist, Boston, Massachusetts, the Commission has jurisdic tion over 2
[hospital]: 3
(I) HOSPITAL services offered by or through all facilities; AND 4
(II) COSTS FOR A FACILITY ASSOCIATED WITH EMPL OYING OR 5
CONTRACTING WITH PHYSICIANS OR OTHER PROFESSIONAL PROVIDERS FOR WHICH 6
THE FACILITY DOES NO T RECEIVE CORRESP ONDING OFFSETTING PR OFESSIONAL 7
REVENUE. 8
(2) The jurisdiction of the Commission over any identified physician service 9
shall terminate for a facility on the request of the facility. 10
(3) The rate approved for an identified physician service may not exce ed 11
the rate on June 30, 1985, adjusted by an appropriate index of inflation. 12
19–212. 13
The Commission shall: 14
(1) Require each facility to disclose publicly: 15
(i) Its financial position; and 16
(ii) As computed by methods that the Commission determines, the 17
verified total costs incurred and revenue generated by the facility in providing health 18
services; 19
(2) Review for reasonableness and certify the rates and revenue of each 20
facility; 21
(3) Keep informed as to whether a facility has enough resources to meet its 22
financial requirements BY TAKING INTO ACCOU NT ALL COSTS INCURRE D OR 23
EXPENDITURES MADE BY THE FACILITY IN CONN ECTION WITH THE OPER ATION OF 24
THE FACILITY, INCLUDING COSTS TO EMPLOY OR CONTRACT WI TH PHYSICIANS OR 25
OTHER PROFESSIONAL P ROVIDERS FOR WHICH THE FA CILITY DOES NOT RECE IVE 26
CORRESPONDING OFFSETTING PROFESSIONAL REVENUE; 27
(4) Concern itself with solutions if a facility does not have enough 28
resources; 29
(5) Assure each purchaser of health care facility services that: 30
(i) The to tal costs of all hospital services offered by or through a 31
facility are reasonable; 32
HOUSE BILL 616 3
(ii) The aggregate rates of the facility are related reasonably to the 1
aggregate costs of the facility; and 2
(iii) Rates are set equitably among all purchasers of services without 3
undue discrimination; 4
(6) Develop guidelines for the establishment of global budgets for each 5
facility under Maryland’s all –payer model contract, including guidelines to prevent 6
facilities from taking actions to meet a budget that the Commission determines would have 7
adverse consequences for recipients or purchasers of services; 8
(7) Receive confirmation from Commission staff that facility global budget 9
agreements, as they are developed, are consistent with the guidelines; and 10
(8) After review by the Commission for compliance with the guidelines, 11
post each executed global budget agreement on the Commission’s website. 12
19–219. 13
(a) The Commission may review the costs, and rates, quality, and efficiency of 14
facility services, and make any investigation that the Commission considers necessary to 15
assure each purchaser of health care facility services that: 16
(1) The total costs of all hospital services offered by or through a facility 17
are reasonable; 18
(2) The aggregate rates of the fa cility are related reasonably to the 19
aggregate costs of the facility; and 20
(3) Except as provided in § 19 –214.2(l) of this subtitle, the rates are set 21
equitably among all purchasers or classes of purchasers without undue discrimination or 22
preference. 23
(b) (1) To carry out its powers under subsection (a) of this section, the 24
Commission [may]: 25
(I) MAY review and approve or disapprove the reasonableness of 26
any rate or amount of revenue that a facility sets or requests; AND 27
(II) SHALL TAKE INTO ACCO UNT ALL COSTS INCURR ED OR 28
EXPENDITURES MADE BY THE FACILITY IN CONN ECTION WITH THE OPER ATION OF 29
THE FACILITY, INCLUDING COSTS TO EMPLOY OR CONTRACT WI TH PHYSICIANS OR 30
OTHER PROFESSIONAL P ROVIDERS FOR WHICH T HE FACILITY DOES NOT RECEIVE 31
CORRESPONDING OFFSETTING PROFESSIONAL REVENUE. 32
4 HOUSE BILL 616
(2) A facility shall: 1
(i) Charge for services only at a rate set in accordance with this 2
subtitle; and 3
(ii) Comply with the applicable terms and conditions of the all–payer 4
model contract. 5
(3) Consistent with the al l–payer model contract, in determining the 6
reasonableness of rates, the Commission may take into account objective standards of 7
efficiency and effectiveness. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 9
measure, is necessary for the immediate preservation of the public health or safety, has 10
been passed by a yea and nay vote supported by three –fifths of all the members elected to 11
each of the two Houses of the General Assembly, and shall take effect from the date it is 12
enacted. 13